Bitcoin is trading above $20k again after spending most of the week trading below that psychological level.
The cryptocurrency market has been underperforming for the best part of the week. However, it looks like the market will end the week on a positive note as most of the cryptocurrencies are trading in the green zone.
The overall market cap rose above $1 trillion for the first time in more than a week, indicating a bullish trend within the market. This comes after the broader market added more than 5% to its value over the past 24 hours.
Bitcoin’s dominance level in the market fell below 39% for the first time in more than two years. However, that hasn’t stopped the major cryptocurrency from performing well over the past few days.
Bitcoin has increased its value by over 7% in the last 24 hours, crossing the psychological level of $20k. This happened as BTC spent the best part of the week at around $19k per coin.
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The BTC/USD 4 hour chart has turned bullish as bitcoin has performed well over the last 24 hours. Technical indicators suggest that BTC is outperforming the broader crypto market.
The MACD line turned positive a few hours ago, indicating that the bulls are gaining control of the market.
The 14-day Relative Strength Index of 73 suggests that Bitcoin could be entering overbought territory if the rally can be sustained.
As of press time, BTC is trading at $20,757 per coin. If the positive momentum continues, BTC may cross the $21,476 resistance level for the day.
In the event of an extended rally over the weekend, BTC could take a step towards the $22,136 resistance level.
Bears are likely to gain control of the market over the weekend and pull bitcoin below the psychological level of $20k.